[Congressional Record (Bound Edition), Volume 150 (2004), Part 18]
[Senate]
[Page 24246]
[From the U.S. Government Publishing Office, www.gpo.gov]




        HOUSE PASSAGE OF THE INTERNET TAX NON-DISCRIMINATION ACT

  Mr. LEAHY. Mr. President, I am pleased that the House of 
Representatives passed today the Internet Tax Non-Discrimination, Act, 
S. 150, clearing this bipartisan bill for its signature into law by the 
President. This bipartisan legislation will continue to support 
electronic commerce by keeping it free from discriminatory and multiple 
State and local taxes and from Internet access taxes.
  I am proud to be a cosponsor and strong supporter of this compromise 
legislation to extend for the next 3 years the moratorium on taxes on 
Internet access and multiple and discriminatory taxes on electronic 
commerce. In addition, our bipartisan bill will safeguard fees for 
universal service and 911 or E-911 services and does not affect the 
emerging technology of Voice Over Internet Protocol, VOIP. I thank 
Senator Wyden, Senator Allen, Senator McCain, Representative Cox, 
Representative Sensenbrenner, Representative Conyers, and others for 
their leadership on this legislation.
  The Internet has changed the way we do business. Today businesses can 
sell their goods and services all over the world in the blink of an 
eye. E-commerce has created new markets, new efficiencies and new 
products.
  The growth of electronic commerce is everywhere, and it has been 
important to the businesses and the economy of my home State of 
Vermont. For example, the Vermont Teddy Bear Company, which employs 
more than 300 Vermonters, sells online 60 percent of its bears during 
its two busiest times of the year for Valentine's Day and Mother's Day. 
That is 60 percent of all Vermont Teddy Bears sold online during this 
busy time.
  Hundreds of Vermont businesses are selling online, ranging from Al's 
Snowmobile Parts Warehouse to Ben & Jerry's Homemade Ice Cream. These 
Vermont cybersellers are of all sizes and customer bases, from Main 
Street merchants to boutique entrepreneurs to a couple of famous ex-
hippies who make great ice cream.
  What Vermont online sellers have in common is that Internet commerce 
allows them to erase the geographic barriers that historically limited 
our access to major markets. With the power of the Internet, Vermonters 
can sell their products and services anywhere and at any time.
  Although electronic commerce is beginning to blossom, it is still in 
its infancy. Stability is the key to reaching its full potential, and 
carving out new tax categories for the Internet is exactly the wrong 
thing to do.
  E-commerce should not be subject to new taxes that do not apply to 
other commerce. Indeed, without a moratorium, there are 30,000 
different jurisdictions around the country that could levy 
discriminatory or multiple Internet taxes on E-commerce.
  Let's not allow the future of electronic commerce--with its great 
potential to expand the markets of Main Street businesses--to be 
crushed by the weight of discriminatory or multiple taxes.
  Extending the bar on Internet access taxes will help Vermonters end 
the digital divide and help Vermonters compete for better jobs. Earlier 
this year, the University of Vermont released a study that found only 
39 percent of Vermonters who earn less than $20,000 a year have 
personal computers, while 67 percent of Vermonters who earn more than 
$35,000 a year own personal computers. And 92 percent of Vermonters who 
do own a computer are connected to the Internet. We have to close this 
digital divide for Vermonters to have the skills for the good-paying 
jobs of the 21st century.
  The Internet Tax Nondiscrimination Act will bar Internet access taxes 
and multiple or discriminatory taxes on goods and services sold over 
the Internet to provide the stability necessary for electronic commerce 
to flourish, and to help close the digital divide for all Americans.

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